What insurance is out there to protect me? Structural Defects Insurance

Builders constantly asked us this question, as they are very concerned that if a Structural Defect occurs in 5,8,10 years after completion of the project and they may have retired, they will be sued!!

10-year Latent (Structural) Defects Insurance answers this problem for builders.

It is the nature of construction projects that faults and defects caused by failures in design, workmanship or materials, may not become apparent or detectable (even with the exercise of reasonable care) until many years after completion of the project.

Latent Defects insurance indemnifies you the builder as the insured for the cost of the rectification for repairs to damage caused by a Structural defect.

The policy not only protects the builder but also the owner, as now the insurer fixes the problem so there is no need for costly legal litigation to place blame. 

Benefits of the policy are enormous:

  • As the Builder, you are jointly insured with the owner – No liability.
  • Ideal, if you are planning to retire – 10-year cover.
  • Negligence and fault do not have to be proved ensuring problems are rectified promptly.
  • Avoidance of litigation and legal costs reducing time delays, hassles and loss of income.
  • Increases the value of the property compared to those properties without Latent Defects Insurance plus financiers will be more amenable to finance a property with Latent Defects Insurance.
  • No personal guarantees or deeds.
  • Removes provision for rectification work from balance sheet.
  • Simple Application form.

Also, what an advantage you also have when quoting on new projects by offering Latent Defect Insurance with all of its advantages to the Owner.

What is the difference between Builders Warranty and Latent Defects Insurance. Warranty is activated if you the builder dies, disappear or becomes insolvent. Latent Defects Insurance activates if an unforeseen structural defect occurs after Completion for up to 10 years from that date

And if you are thinking of retiring in the next 10 years, the last thing you want is to be in litigation 8-10 years into your retirement. Buildsafe Latent Defect Insurance takes away that problem so you relax in retirement.


After the structural problems with the ‘Opal’ building and now ‘Mascot Towers’ there is now an insurance policy that supports the builder, owner/developers, tenants or purchasers of Residential and Commercial Buildings.

If a structural defects occurs the insurance pays, no time delay or legal litigation taking years and years, it is up to our insurer to seek remedies against who is responsible NOT you the owner builder, builder or developer!

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